ITV
A range trading opportunity for you?
Will ITV break resistance, or will it fall back to 125p?
- 125-140p range since November; Now trades 138p (at time of writing)
- Will the pattern repeat itself, testing the 125p floor?
- Shares -2.1% from 2019 highs; +13.4% from 2019 lows; +10.9% year-to-date.
- 12 Apr: Liberum says Disney’s streaming pricing raises questions for ITV
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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Trading ITV – An Example
Let’s say you like the range, you think it’s heading back towards 125p again. You decide to sell exposure to £10,000 worth of ITV using a CFD, at the current price of 138p. To do this, you need £2,000.
Let’s assume ITV falls to 125p (-9.4%). Your profit would be £940, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. ITV rises 3% and hits your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.